National Cranberry Cooperative

MGT-674Case Solution

Dry berries
Bins1-16,17-24
Destoning(3)
Dechaffing(1-3)
Kiwanee 4,000-6,000
4,500bbls/hr.
Bins1- bbls 4,500bbls/hr.
Dumpers (5)
3,000 bbls/hr. Jumbo separator(3)
1200bbls/hr.

Wet berries Dechaffing(1-3) Dryers(3)

Bin17-24,25-27 4,500bbls/hr. 600bbls/hr.
1200-3200 bbls

First quality 75. 7%

Unacceptable berries

Unacceptable berries
Bagging(4) Bulk bins(4) Bulk trucks(2) Bailey Mills(3)
667bbls/hr. 800bbls/hr. 1,000bbls/hr. Second quality 1,200bbls/hr.
12%

According to the case, it provides the facts for calculating capacity for each activity per hour

1.Kiwanee dumpers - each truck took 5-10 min to unload contents: average 7.5min
60/
- each dumper capacity: 7.5 min 75/ = 600bbls/hr (for 1

dumper)
- 5 units= 600bbls5= 3,000bbls/hr.

2. Bins1-27 - Bin 1-16 (dry) held 250bbls = 250bbls16bins =4,000bbls

- Bin 17-24 (dry and wet) held 250bbls = 250bbls8bins = 2,000bbls
- Bin 25-27 (wet) held 400bbls = 400bbls3bins = 1,200bbls
 =Dry berries (min 4,000bbls), (max4,000+2,000=6,000bbls)
=Wet berries (min 1,200bbls), (max1,200+2,000=3,200bbls)

3.Dechaffing - 3units1,500bbls/hr. = 4,500bbls/hr.

4.Destoning (dry berries) - 3units1,500bbls/hr. = 4,500bbls/hr.

5.Dryer (wet berries) - 3units200bbls/hr. = 600bbls/hr.

6.Jumbo separator - 3units400bbls/hr. = 1,200bbls/hr.

7.Bailey Mills (for second quality only) -3units400bbls/hr.= 1,200bbls/hr.

(same principle as jumbo separator)
8.Bagging - 8,0000bbls12hr. = 667bbls/hr.

9.Bulk bins - 200bbls/hr. 4units = 800bbls/hr.

10.Bulk trucks -2units 1,000bbls/hr. = 2,000bbls/hr.

To find cranberry demand in high-volume period, the case provides that the period is from
September 20 to October 10. The table from exhibit 2 provides the total delivery of berries for
high-volume period which can be computed to find average delivery per hour

hour/day

327451
= 11hr.
20

=1,488 bbls/hr.
Cranberry has been delivered 1,488bbls per hour (demand). This number is divided by capacity
of each process for figuring utilization. However, some activities require only dry berries while
some require only wet berries. According to the case, 70% of the cranberries are wet berries and
30% are dry berries.
Activity(bbls/hr) Capacity Dry demand Wet demand Total demand Utilization
kiwanee dumpers 3000 447 1042 1488 50%
dechaffing 4500 447 1042 1488 33%
destoning 4500 447 0 447 10%
dryer 600 0 1042 1042 174%
jumbo separator 1200 447 1042 1488 124%
(In the activities of bailey mill, bagging, bulk bins, bulk trucks, the case doesnt provide any
specific demand in these activities. Hence, the lacking of demand is unable to calculate
utilization of these process.)

According to the table, the highest utilization is in dryer process (174%) which means that dryers
are bottleneck.

If the company add one more dryer, the utilization will be decreased.
the new capacity of dryers activities will be (3units+1unit)200bbls/hr. = 800bbls/hr.
1042/.
the new utilization =130%
800/

The inventory buildup is Fruit Receiving per hour- bottleneck capacity per hour.
=1042bbls/hr. (wet berries) 600bbls/hr. (bottleneck capacity)
=442bbls/hr.
In my opinion, although the company add one more dryer, the utilization still has a high rate.
They should add at least 3 dryers to make the utilization less than 100%.

-add 2 dryers (3units+2units)200bbls/hr. = 1,000bbls/hr

1042/.
=104.2% (not enough)
1,000/

-add 3 dryers (3units+3units)200bbls/hr. = 1,200bbls/hr

 1042/.
=86.83% (not enough)
1,200/

To suggest the bottleneck problem, if the company add 3 more dryers in the process, it will
sole the bottleneck in dryer activity.